Mutual Fund Apps: A Beginner’s Guide to Investing in Mutual Funds
If you are a beginner starting investing, and you ask anyone (literally anyone!) what a good place to start might be – they will tell you it’s mutual funds.
We want to delve deeper into why this is the case, and how beginners can start investing in mutual funds using popular mutual fund investing apps.
- Smaller Amounts – Most mutual fund apps will allow you to invest using amounts as small as ₹500 a month (yes, through SIPs!). So, investing in mutual funds through an app doesn’t need to mean that you have to invest using large sums of money – they allow you to start small and build your investments as you go.
- Rupee Cost Averaging – Mutual fund investing through SIPs has one important benefit for investors, and that is the advantage of rupee cost averaging. Rupee cost averaging means that instead of investing a lump sum amount into any number of units of your selected fund, you will break up that lump sum to make regular investments over a period of time while the prices of these units vary. So if you buy fewer units for a higher price in one month, there is also a chance you’ll end up buying more units at a lower price in another month – averaging out your costs of investing.
In addition to these three key benefits, mutual funds are also a good way to diversify your portfolio. The prices of stocks can rise and fall – but you can mitigate your risk by investing through a mutual fund app that gives you various investment options. So you can invest in either debt, equity, or liquid funds, or you can also invest in tax-saving mutual fund schemes – the choices are umpteen!
Once you’ve found your preferred mutual fund app, be sure to explore all your options before you start investing. And of course, keep in mind that – “Mutual funds are subject to market risk. Please read the offer document carefully before investing.”
Here are some mutual fund investing apps that can help you get started with your investment journey –
- Paytm Money – You can use the Paytm Money app to invest in mutual funds through SIPs as low as ₹100 per month. Paytm offers users debt, equity, liquid, and ELSS (Equity Linked Savings Scheme) tax-saving mutual funds as well. The direct plans even guarantee 1% higher returns! Most importantly. you can withdraw your investments by incurring a minimal exit load.
So these are just some of the reasons why seasoned investors will recommend mutual fund investing as a good starting point for young investors.
Keep in mind that while starting out, investing regularly is the key to gaining returns. If you’re a newbie investor, time is your ally – and the sooner you start invest-ing, the sooner you will get to diversify-ing, and the sooner you get to diversify-ing, the sooner you’ll get to – Kach-Ing! (See what we did there?) 🙂
